NEARLY one-in-four first-time buyers think they will have to save for six years to set aside enough money for a housing deposit, a survey showed yesterday.

The average first-time buyer takes three and a half years to save a typical deposit of £22,800 for a first home, but 23% think it will take them at least six years, according to high street bank Abbey.

Just 19% of people think they will be able to pull together the money they need to get on to the property ladder in a year.

Many first-time buyers are looking for ways to boost their income to help them save quicker, with 30% taking on second jobs, and 28% investing in stocks and shares in the hope of getting higher returns.

First-time buyers have previously been able to take out 100% or even 125% mortgages, removing the need to save for a deposit. But since the credit crunch hit and lenders became more risk averse, all 125% deals have been pulled, while only a handful of 100% loans remain.

Meanwhile lenders are asking for increasingly large deposits, with some now demanding at least 10%, and others, such as Nationwide, only offering their best rates to customers borrowing 75% or less of the value of their property.

Nici Audhlam-Gardiner, director of Abbey Mortgages, said, “Saving for a deposit is no easy task, especially with the average needed now standing at more than £20,000.

“But in the current climate, having a deposit is necessary to secure the most competitive mortgage rates.”